[Federal Register Volume 78, Number 123 (Wednesday, June 26, 2013)]
[Rules and Regulations]
[Pages 38537-38538]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15213]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket FAR 2013-0078, Sequence 4]
Federal Acquisition Regulation; Federal Acquisition Circular
2005-68; Small Entity Compliance Guide
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Small Entity Compliance Guide.
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SUMMARY: This document is issued under the joint authority of DOD, GSA,
and NASA. This Small Entity Compliance Guide has been prepared in
accordance with section 212 of the Small Business Regulatory
Enforcement Fairness Act of 1996. It consists of a summary of the rule
appearing in Federal Acquisition Circular (FAC) 2005-68, which amends
the Federal Acquisition Regulation (FAR). An asterisk (*) next to a
rule indicates that a regulatory flexibility analysis has been
prepared. Interested parties may obtain further information regarding
this rule by referring to FAC 2005-68, which precedes this document.
These documents are also available via the Internet at http://www.regulations.gov.
DATES: June 26, 2013.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
the analyst whose name appears in the table below. Please cite FAC
2005-68 and the FAR case number. For information pertaining to status
or publication schedules, contact the Regulatory Secretariat at 202-
501-4755.
Rule Listed in FAC 2005-68
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Subject FAR Case Analyst
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*Expansion of Applicability of the Senior Executive Compensation 2012-017 Chambers.
Benchmark (Interim).
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SUPPLEMENTARY INFORMATION: Summary for the FAR rule follow. For the
actual revisions and/or amendments made by this FAR case, refer to the
specific item number and subject set forth in the document following
this item summary. FAC 2005-68 amends the FAR as specified below:
Expansion of Applicability of the Senior Executive Compensation
Benchmark (FAR Case 2012-017) (Interim)
This interim rule amends the FAR to implement the statutorily-
expanded reach of the limitation on the allowability of compensation
costs for certain contractor personnel. This limitation on the
allowability of compensation costs is an amount set annually by the
Office of Federal Procurement Policy. Prior to the enactment of section
803 of the National Defense Authorization Act for Fiscal Year 2012
(Pub. L. 112-81), this limitation applied to a contractor's five most
highly compensated employees in management positions at each home
office and each segment of the contractor, with respect to all
contracts subject to the FAR cost principles with
[[Page 38538]]
all Federal agencies. In section 803, Congress expanded the application
of the limitation so that it applies to all contractor employees,
rather than just the top five executives in the case of contracts
covered by Title 10 of the United States Code. Moreover, Congress in
section 803(c)(2) stated that this expanded reach ``shall apply with
respect to costs of compensation incurred after January 1, 2012, under
contracts entered into before, on, or after the date of the enactment
of this Act'' (the date of enactment was December 31, 2011). Section
803(c)(1) also provided that this change shall be implemented in the
FAR.
This interim rule implements section 803 and provides that for DoD,
NASA, and Coast Guard contracts, the compensation limitation applies to
all contractor employees, rather than just the top five executives. For
contracts with agencies other than DoD, NASA, and the Coast Guard, the
reach of the limitation was not changed by section 803 and therefore
will continue to be a contractor's five most highly compensated
employees in management positions at each home office and each segment
of the contractor.
An analysis of data in the Federal Procurement Data System (FPDS)
revealed that most contracts awarded to small entities use simplified
acquisition procedures or are awarded on a competitive, fixed-price
basis, and do not require application of the cost principle contained
in this rule.
Section 803 is being implemented in the FAR through two
rulemakings. In accordance with section 803, this interim rule applies
to the compensation costs of all contractor employees incurred after
January 1, 2012, on all DoD, NASA, and Coast Guard contracts awarded on
or after December 31, 2011. Concurrently, DoD, GSA, and NASA are
issuing a proposed rule (FAR Case 2012-025) to solicit comments on the
application of the requirements of section 803 to DoD, NASA, and Coast
Guard contracts entered into before December 31, 2011.
Dated: June 10, 2013.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of
Acquisition Policy, Office of Governmentwide Policy.
[FR Doc. 2013-15213 Filed 6-25-13; 8:45 am]
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